S.L. 156.2 Art. 5Additional considerations of the Licensing Authority when granting a licence.

(1) The Licensing Authority shall not grant a licence unless it is satisfied with evidence submitted by the applicant that the applicant has made or will make adequate provision to cover liabilities potentially deriving from the applicant’s offshore oil and gas operations. Such provision shall be valid and effective from the start of offshore oil and gas operations.

(2) Applicants shall provide, in an appropriate manner, evidence of technical and financial capacity and any other relevant information relating to the area covered by the licence and the particular stage of offshore oil and gas operations.

(3) The Licensing Authority shall assess the adequacy of provisions referred to in sub-regulation (1) to ensure that the applicant has sufficient financial resources for the immediate launch and uninterrupted continuation of all measures necessary for effective emergency response and subsequent remediation.

(4) The Licensing Authority shall facilitate the deployment of sustainable financial instruments and other arrangements to assist applicants for licences in demonstrating their financial capacity pursuant to sub-regulation (2).

(5) The Licensing Authority shall require the licensee to maintain sufficient capacity to meet its financial obligations resulting from liabilities for offshore oil and gas operations.